Illinois Tool Works Inc (ITW)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 948,000 | 947,000 | 862,000 | 959,000 | 1,065,000 | 990,000 | 922,000 | 1,143,000 | 708,000 | 774,000 | 879,000 | 1,296,000 | 1,527,000 | 1,987,000 | 2,058,000 | 2,484,000 | 2,564,000 | 2,169,000 | 1,812,000 | 1,430,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,308,000 | 4,627,000 | 4,804,000 | 4,844,000 | 4,675,000 | 3,982,000 | 4,040,000 | 5,596,000 | 4,460,000 | 4,392,000 | 4,294,000 | 3,858,000 | 3,470,000 | 2,996,000 | 2,960,000 | 2,680,000 | 2,589,000 | 2,540,000 | 2,042,000 | 2,032,000 |
| Cash ratio | 0.22 | 0.20 | 0.18 | 0.20 | 0.23 | 0.25 | 0.23 | 0.20 | 0.16 | 0.18 | 0.20 | 0.34 | 0.44 | 0.66 | 0.70 | 0.93 | 0.99 | 0.85 | 0.89 | 0.70 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($948,000K
+ $—K)
÷ $4,308,000K
= 0.22
The cash ratio of Illinois Tool Works Inc has shown some fluctuations over the past years, ranging from a low of 0.16 to a high of 0.99. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash available to cover its short-term obligations.
Between March 31, 2020, and December 31, 2021, the cash ratio remained relatively stable, ranging between 0.70 and 0.99. However, there was a notable decline in the cash ratio during the latter half of 2021 and throughout 2022, reaching a low of 0.16 by December 31, 2022. This drop may indicate that Illinois Tool Works Inc was facing challenges in maintaining its liquidity or was deploying its cash reserves for other purposes.
From March 31, 2023, to December 31, 2024, the cash ratio showed a slight recovery but remained below 0.25. This suggests that the company may still be working on improving its liquidity position and managing its cash effectively.
Overall, the cash ratio trend reflects Illinois Tool Works Inc's liquidity management and its ability to meet short-term financial obligations with available cash resources. Investors and stakeholders should continue to monitor the company's cash ratio to assess its liquidity strength and financial stability.
Peer comparison
Dec 31, 2024